Asset specificity, intensity of coordination, and the choice of hybrid governance structures
Journal of Agribusiness in Developing and Emerging Economies
ISSN: 2044-0839
Article publication date: 15 May 2019
Abstract
Purpose
The purpose of this paper is to discuss the relationship between the existence of asset specificity and the architecture of the hybrid governance structures adopted by horticultural smallholders from the Brazilian region of Serra Fluminense.
Design/methodology/approach
This paper uses a negative binomial regression model to analyze 567 transactions carried out by horticultural smallholders from the Brazilian region of Serra Fluminense. Starting from the insights of Oliver Williamson’s transaction cost economics, an indicator is constructed with the goal to capture the degree of intensity of coordination from the adoption of diverse bundles of coordination mechanisms in a governance structure.
Findings
The results show that higher levels of human and physical asset specificity affect the intensity of coordination of the transactions in the sample, leading to the adoption of hybrid forms with more complex bundles of coordination mechanisms.
Research limitations/implications
This paper adds to a growing literature that studies the architecture of complex governance structures. However, its empirical conclusions are exploratory.
Originality/value
The contribution of this paper is twofold. First, quantitative empirical studies that analyze the diversity of hybrid forms in the same industry are relatively rare. This contribution also presents a theoretical discussion that might inform scholars dealing with similar research challenges.
Keywords
Citation
Meirelles de Souza Filho, H. and Varella Miranda, B. (2019), "Asset specificity, intensity of coordination, and the choice of hybrid governance structures", Journal of Agribusiness in Developing and Emerging Economies, Vol. 9 No. 2, pp. 139-158. https://doi.org/10.1108/JADEE-11-2017-0127
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited